Oil Prices Up
2% and Brent Crude Hits $80.47 per Barrel
September 24, 2018
Oil prices rose 2% on Monday as U.S.
sanctions restricted Iranian crude exports, tightening global
supply.
Brent crude futures hit its highest since
May at $80.47 per barrel, up $1.63 or more than 2%.
U.S. West Texas Intermediate crude rose
by $1.18 to settle at $71.96.
U.S.
commercial crude oil inventories are at their lowest since early
2015 amidst a scares market. Although U.S. oil production is
near a record high of 11 million barrels per day, subdued U.S.
drilling activity points towards a slowdown in output.
The
Organization of the Petroleum Exporting Countries (OPEC) as well
as top producer Russia are discussing raising output to counter
falling supply from Iran, although no decision has been made
public yet.
Saudi
Arabia and its biggest oil-producer ally outside the group,
Russia, on Sunday ruled out any immediate extra increase in
output, effectively rebuffing a call by U.S. President Donald
Trump for action to cool the market.
(Reuters)
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